The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1887-06-09

THE difference between 500, 600, 600 at
a per cent. interest for fifty years and $50,
COO 900 ut 8 per cent interest for the same
period is precisely the difference between
the two principal sums,-that is $4,000
600. We call the attention of our es-
teemed contempory, the Vdlley Virgin
ian. to that important fact Another
important fact is that we do not owe
this $l0,000.O00. Nevertheless, gen.
tleman of Richmond who has dealt largely
in bonds and still does so, recently assured
us that he would rather have Ss21 200, 900
in bonds at per cent than $50, 900 900 at
g per cent. both for a long term of years.
as the former would sell in the market, he
believed, for a greater net aggregate than
the latter. and. at any rate, would be
greatly preferred for investment by all
wanting immediate income rather than ul-
innate payment of principal. -Roanoke
Leader
We explained in the VIRGINIAN of the
Goth how the mistake in the statement Of
the point we intended to make occurred.
But another view presents itself. 1t is
this: We owe six per cent. on the debt as
stated in the Riddleberger bill, (if we owe
anything) and the only reason for fixing
the interest on that formulation at 3 per
cent was the assumed inability Of the
State to pay more. AS between fifty year
bond representing $40, 900, 900 at 6per cent.
and a fifty year bond representing $50 000,-
600 at 3 per cent. the difference in favor
of the State at the maturity of the obi
cations would be $l5.0O0,000 on the latter
account. We do not believe that the State
owes more of principal than the Riddle
berger bill states. But the Legislature of
1871 and of 1879 said we did owe what the
creditors now claim, and they authorized
the issuing of bonds to that amount. The
creditors were invited to accept that state
ment and fund their old bonds in the new
bonds authorized by that legislation. They
did so, and in doing so, had a right to as
sumo that the Legislature knew what it
was doing. The courts have declared that
the bonds so re adjusted according to the
express arrangement of the Legislature
constitute contract, and it is upon this
that the creditors stand. The Riddleber-
ger formulation was not known at that
time. 1t was not presented as Compel
| ing proposition, or discussed in any way. 1t
was only by an exhaustive investigation af-
| forwards the conclusion was reached that
| the State owed no more than the Riddleber-
ger act ascertained; but as the two state
ments of the debt came from the same au
thority, carrying with them equal dignity
and legitimacy, it is not unnatural or UNI
reasonable that the creditors should adhere
to the first, under which the old bonds
were funded. The grounds of compro
mise, therefore, rest in the ultimate pay
ments to be made. The payment of $40,
900, 900 of principal moro at the expiration
of the fifty years, would not be as great
hardship upon the people as paying $4,000
600 additional in interest upon the premise
of per cent. on $40 600, 600.
We do not wish to be misunderstood il
this matter. We are advocating neithe
a $40, 900 600 debt at 8 per cent. nor a $40,
600, 900 at per cent. We only want t.
call attention to the fact that there is NJ
legal grounds upon which to dispute the
per cent. interest on 10000, 900. Povert..
was the only plea urged for not aeknowl
edging it in the statement of 1882. AM
while $50, 100000 of principal is $1,000,
600 more than we be ievn we owe; yet
per cent. interest on $50 100000 is 3 pc
cent. interest less than we believe we owe
So the aggregate of interest that would b
paid on $50, 000,0 900 in fifty years would b
less by SIS ,00O, 900 than the aggregate o
interest on $50, 100000 at per cent. il
fifty years
Werefer to the matter, in this manner
to show that there are reasonable ground
for compromise and an adjustment o
the whole controversy, if both the credi
tors and the State are disposed to yiel
something of the forms OF the debt TO
which they contend, and look at the eqni
ties as well as the policy involved, and tina
ought to be consulted. Were the presen
feeling between the parties directly to tn
contention, supplanted by an honest de
sire to settle the difference: cease angr
and costly strife in the courts, and com
together on grounds of mutual concession
looking to an amicable adjustment, we be
lieve an arrangement could be made tina
would lie both satisfactory to the credi
tors and the State. We cannot reach sucl
a desirable consummation, however, b.
denouncing the bondholders, stigmatisins
the courts or ar0using the passions of thu
people. 1t must be approached as business
men would approach serious business
complication; and with purpose to do thu
right and the honest thing. as far as in Ii
lies. With this spirit to control we do 10
believe there would beany insuperable i'm
pediment to final settlement of the ag
gravating and ruinous controversy now go
ing on between the Aondholders and TIT
State.
The first thing to do is to get rid of thu
pestiferoVs fourth class politicians. who
do not comprehend the situation, and il
they did, would not face it, unless some
partiZan advantages could be eked out OF
it. The people ought to demand the ser
vices for the next Legislature of the best
men in each election district, whether
Democrats OF Republicans. and in defiance
of party caucus and ring methods send
them to Richmond commissioned and com
mqnded to settle the debt upon some eGuita
Die basis. What is NECESSARY is for the
popular mind to be put at rest on this
subject-for the reason to be emanci.
pated frop the irrltati0ns caused by de
signing depagngneG, and to consider the
matter in Tie light of common sense.
common justice and an enlightened public
policy. The discomfort and dissatisfac-
ton that prevail with the people, and the
distrust that exists outside of the State.
are losing more to the Commonwealth
every year than any difference between the
| creditors and the State could possibly
make, If an adjustment were once eff
fected, new life would inspire every inter
est, fresh Vigor and enterprise he given to
the people, capital flow in and the Old Do
minion soon take her proper position
| amono the nrovrasaiva wealthy and in